Frequently Asked Questions


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Frequently asked questions

Short answers to the questions we hear most about global PEO, EOR, international hiring, compliance, and cost. Each one links to a deeper guide.

Looking for the full picture rather than a quick answer? Read the complete Global PEO guide →

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PEO & EOR basics

What is a PEO?

A professional employer organization (PEO) co-employs your staff to run payroll, benefits, HR, and compliance, so you can employ people without carrying the full administrative and legal load. Read more →

What is an Employer of Record (EOR)?

An EOR legally employs workers on your behalf in a country where you have no entity, handling payroll, benefits, taxes, and compliance while you manage the work. Read more →

Is a global PEO the same as an EOR?

In practice, yes. When a PEO employs your workers in a country where you have no entity, it does so as an Employer of Record; “global PEO,” “international PEO,” and “EOR” describe the same service. Read more →

What’s the difference between a US PEO and a global PEO?

A US PEO co-employs workers only where you already have a US entity. A global PEO employs people in countries where you don’t, acting as the legal employer of record there. Read more →

Can a US PEO hire employees in other countries?

No. A US PEO relies on US co-employment and can’t be the legal employer outside the United States; hiring abroad requires a global PEO/EOR. Read more →

Do I keep control of my employees with a PEO?

Yes. You direct their work, goals, and performance; the PEO only handles the employment relationship, payroll, benefits, and compliance in the background. Read more →

Contractor, employee, or PEO — which should I use?

Contractors are fast but carry misclassification risk; a global PEO/EOR lets you engage someone as a compliant employee without setting up your own entity. Read more →

How a global PEO works

How fast can I hire through a global PEO?

Usually days, because the provider already has a compliant entity in-country, versus the months it takes to set up your own entity. Read more →

Why does a global PEO work well for testing a new market?

It lets you hire compliantly and exit cleanly without the cost, time, and long wind-down of building your own entity first. Read more →

Do I need a local bank account in each country?

Generally no. For payroll purposes a global PEO runs in-country pay, so you don’t need to open a bank account in every country you hire in. Read more →

Is a global PEO only for small companies?

No. Companies of every size use one to access local compliance expertise and keep visibility over a distributed workforce. Read more →

Can a global PEO help with mergers and acquisitions?

Yes. It gives acquired teams a compliant soft landing off a transition services agreement, and you can move to your own entity later if scale justifies it. Read more →

What happens when I want to exit a country?

With a global PEO you have no entity to wind down, so you resolve employee obligations like severance without the cost and delay of closing a corporation. Read more →

Compliance & risk

How does a global PEO help with risk management?

It carries the in-country employer liability, sets compliant contracts from day one, and keeps your footprint — and your exposure — small. Read more →

Is a global PEO responsible for GDPR and employment disputes?

A global PEO is GDPR-compliant and, as the registered employer, works with you to resolve employment disputes. Read more →

What are the risks of hiring international contractors?

Misclassification can trigger back taxes, social-contribution liability, and IP disputes; a PEO/EOR engages the worker compliantly as an employee. Read more →

Cost

How much does a global PEO cost?

Typically a per-employee monthly fee — around $400 to $700 in 2026 — covering the legal employer role, local payroll, benefits, and compliance. Read more →

What’s the cheapest way to hire one employee in Europe?

A global PEO/EOR — far cheaper than entity setup for a single hire, which runs into five figures upfront plus ongoing compliance cost. Read more →

How does using a global PEO impact overall costs?

It cuts the time and overhead of entity setup and multi-country payroll, and gives you the visibility that prevents costly errors. Read more →

Still have a question?

Tell us the country and the headcount, and a Global PEO Services expert will walk you through your options.